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RESOLUTION NO. 5808
A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE
CITY OF PUEBLO, A MUNICIPAL CORPORATION AND PCL
PACKAGING (SOUTH - WEST), INC., A DELAWARE CORPOR-
ATION RELATING TO THE TRANSFER OF LAND AT PUEBLO
MEMORIAL AIRPORT AND AUTHORIZING THE PRESIDENT
OF THE CITY COUNCIL TO EXECUTE THE AGREEMENT AND
THE WARRANTY DEED THEREIN DESCRIBED
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
SECTION 1.
The City Council does hereby find and determine as follows:
(a) There now exists in the City of Pueblo and has existed
for a number of years unemployment in an abnormal amount injurious
to the public health and welfare of the City and its inhabitants
constituting an econonic and social liability impairing and
arresting the sound growth, economic development and stability of
the City.
(b) The prevention and elimination of unemployment and the
social and economic evils associated therewith are proper public
purposes and matters of local and municipal concern which justify
the expenditure of public funds.
(c) The City is the owner by conveyance from the United
States Government of land known as the Pueblo Memorial Airport and
it would be in the best interests of the City and in the public
interests if portions of the Airport land not required for
aviation or airport use be transferred and be reused and developed
for industrial purposes.
(d) PCL Packaging (South - West), Inc. has determined to
construct on land at Pueblo Memorial Airport an approximately
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44,000 square foot manufacturing facility (herein "Project ").
(e) No similar project exists in the City and construction
and equipping of the Project will require a large outlay of
capital.
(f) PCL Packaging (South- West), Inc. believes it will employ
and has committed to the City that it will use its best efforts in
good faith to employ 60 to 70 persons at the Project within two
years after its contruction.
(g) The property described in the Agreement between the City
and PCL Packaging (South - West), Inc. attached hereto is surplus to
the City's needs.
(h) The construction of the Project will stimulate and
promote industrial activity at Pueblo Memorial Airport thereby
creating employment opportunities for the citizens of the City,
greater use of airport facilities and increased aeronautical
activities.
(i) The execution and performance of the Agreement between
the City and PCL Packaging (South - West), Inc. are in the best
interests of the City and its citizens and will promote the public
health, safety, commerce, prosperity and general welfare of the
City and its citizens.
SECTION 2
The Agreement between the City of Pueblo, a Municipal
Corporation and PCL Packaging (South- West), Inc., a copy of which
is attached hereto and incorporated herein as if set out herein in
full having been approved as to form by the City Attorney, is
hereby approved.
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SECTION 3.
The President of the City Council is hereby authorized and
directed to execute for and on behalf of the City the.Agreement
and the Warranty Deed substantially in the form of Exhibit "A"
attached thereto and the City Clerk is directed to affix the seal
of the City thereto and attest same.
INTRODUCED: April 28, 1986
DOUGLAS L. RING
uncilman
ATTEST: APPRO D:
Ci't Clerk P esident of the City Co ncil
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AGREEMENT
THIS AGREEMENT entered into as of the T P day.of April,
1986 between the City of Pueblo, a Municipal Corporation (herein
"City ") and PCL Packaging (South -West) Inc., a Delaware
Corporation, (herein "Company "), WITNESSETH:
WHEREAS, City is the owner by conveyance from the United
States Government of certain land known as the Pueblo Memorial
Airport, Pueblo County, Colorado, and
WHEREAS, it would be in the best interest of the City and in
the public interest if portions of the Airport land not required
for aviation or airport use be transferred and be reused and
developed for industrial purposes, and
WHEREAS, such reuse and development of portions of the
Airport industrial land would increase the tax base and avail-
ability of jobs and promote the economic expansion of the City,
and
WHEREAS, the property described herein is surplus property no
longer of need or use to the City, and
WHEREAS, Company has proposed a plan for the reuse and
development of a portion of the Airport land for industrial use.
NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, City and Company agree as follows:
1. Sale and Purchase (a) City does hereby sell, and
Company does hereby purchase upon the terms and conditions herein,
for a purchase price of $10.00 (herein "Purchase Price ") payable
as herein provided, approximately 7.4 acres, more or less, of real
property located at Pueblo Memorial Airport, Pueblo County,
Colorado described in Exhibit "A" attached hereto and incorporated
herein (herein "Property "). Company acknowledges that City owns
the Property subject to restrictions in the deed to the City
recorded in Book 1074, Page 87, Instrument No. 819072 of the
records of the Clerk and Recorder of Pueblo County, Colorado.
(b) The Purchase Price will be paid in full at closing.
2. Conveyance The City shall convey to Company marketable
title to the Property by general warranty deed substantially in
the form of Exhibit "A" attached hereto and incorporated herein,
free of liens, encumbrances, taxes and assessments. At closing,
the deed will be duly executed and acknowledged for recording.
3. Closing The closing of the transaction contemplated by
this Agreement shall be in Pueblo, Colorado at a time and date
designated by the City, on or before May 30, 1986. The date of
closing hereunder may be changed without amendment to this
It
Agreement by mutual written consent of City and Company. If the
closing does not take place on or before May 30, 1986 or such
later date as City and Company shall mutually agree to in writing,
this Agreement shall become null and void.
4. Conditions Precedent to Closing The Purchase and sale
herein contemplated is contingent upon and subject to the follow-
ing:
(a) Receipt by Company of a standard ALTA owners title
insurance policy, or commitment therefor, in the amount of the
estimated value of the Property as improved satisfactory to
Company, insuring title to the Property free of liens, encumbranc-
es, taxes and assessments. All costs and premium for such title
insurance shall be paid by Company.
(b) Prior approval of the Federal Aviation Administra-
tion (herein "F.A.A. ") and its issuance of all necessary Deeds of
Release for the Property.
(c) Pueblo County granting an exception from its sub-
division regulations for the Property or the inclusion of the
Property in an approved subdivision.
If any of the above conditions precedent to closing are
not complied with prior to closing, Company may terminate this
Agreement and each party shall be released from all obligations
hereunder.
5. City's Representations City represents, warrants and
agrees, subject to closing and Company having complied with its
obligations set forth in paragraph 6 below, to perform or cause to
be performed the following work within the period specified:
(a) Within 3 months after closing, reconstruct Lockheed
Street to intersect with United Avenue in accordance with City's
plans and specifications therefor.
(b) Within 3 months after closing, abandon that portion
of Braniff Avenue which crosses the Property.
(c) Within 6 months after closing, relocate either upon
the Property or in the streets adjacent to the Property the
sanitary sewer, water, and natural qas lines which cross the
Property.
(d) As soon as possible after closing, construct
approximately 300 feet of railroad spur off the Quick -Car spur
along the easterly property line of the Property. The railroad
spur will be owned by City but used and maintained by Company.
6. Company's Representations Company represents, warrants
and agrees, subject to closing and City having complied with its
obligations set forth in paragraph 5 above, as follows:
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(a) Company will construct and equip on the Property an
approximately 44,000 square foot manufacturing facility (herein
"facility ") and will operate its facility in a manner which will
be advantageous to the economic development of the City and County
of Pueblo, Colorado. The facility will be constructed in
accordance with plans and specifications, including parking, site
development and landscaping plans, approved by City, which
approval will not be unreasonably withheld, and in compliance with
applicable federal, state, and local law, regulations and codes.
Company shall commence construction of the facility within six
months after closing and will thereafter diligently pursue its
completion and will in a timely and expeditious manner take all
action necessary and required therefor. Company estimates that
the facility will be operational by February 14, 1987. If Company
does not commence construction of its facility within six months
after closing, the Property will revert to the City free of all
liens, claims, encumbrances, taxes, restrictions, easements and
rights of way placed thereon by the acts or defaults of Company.
If the Property so reverts to City and if City gives written
notice to Company of the exercise of its right of reversion and
tenders to Company all sums actually paid to City by Company for
the purchase of the Property, Company shall execute and deliver to
City a special warranty deed conveying to City marketable title to
the Property free of all liens, claims, encumbrances, taxes,
restrictions, easements and rights of way placed thereon by the
acts or defaults of Company. For purposes of this Agreement the
term "commence construction" means the pouring of footings and
foundations on the Property.
(b) Company shall, at its own expense, cause all
utilities and roads used or to be used by the Company on the
Property to be extended from the streets adjacent to the Property
and installed upon the Property and shall maintain and keep in
good repair all such roads and utility extensions.
(c) Company shall keep and maintain the Property and
all improvements thereon including landscaping in a good, clean,
safe and orderly condition, free of waste, rubbish, debris and
trash.
(d) Waste water discharged from the Property into
City's sanitary sewer system and Company's use thereof are limited
by and subject to City's sewer user, industrial cost recovery,
high strength surcharge, and pretreatment ordinances, rules and
reaulations applicable to City's sanitary sewer system at Pueblo
Memorial Airport, now in effect or hereafter adopted and amended.
(e) Company shall comply with notification and review
requirements of the F.A.A. prior to construction, modification or
alteration of any building or structure on the Property.
(f) Company shall pay to City a combined service fee
for services and facilities now furnished by City at the Pueblo
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Memorial Airport, namely: sewage treatment, public street
maintenance, fire protection, and street lighting based upon
$250.00 per acre per annum payable monthly for each acre of land
conveyed to Company hereunder. City may, from time to time,
reduce or eliminate any or all of the services or facilities
presently being furnished and may modify, increase, or decrease
the annual combined service fee provided (i) such services and fee
shall be non - discriminatory among all other tenants and owners of
land at Pueblo Memorial Airport receiving such services and
facilities, and (ii) such fee shall be reasonable in relation to
City's actual cost and expense of furnishing the services and
facilities then being furnished. City's cost may include the cost
of capital improvements amortized over the useful life of the
improvements.
(g) Company agrees and acknowledges that City reserves
the right, without any obligation on its part to do so, to main-
tain and keep in repair the landing area of the airport and other
public areas or facilities at the Pueblo Memorial Airport and to
develop, modify, change, relocate, abandon, or improve the Pueblo
Memorial Airport, or any part thereof, as it may determine in its
sole and absolute discretion, at any time. Company further
acknowledges and agrees that City has not made, nor by any
provision of this Agreement shall City be construed to have made
any representation or warranty to the contrary relating thereto.
(h) The Property to be conveyed to Company hereunder is
a portion of land City desires to develop into an industrial park.
City in developing the industrial park intends to prepare and
record appropriate restrictive covenants restricting the develop-
ment and use of the land adjacent to the Property to industrial
and commercial development and uses which are generally compatible
with Company's contemplated use for the Property. City agrees to
consult with Company in the preparation of such restrictive
covenants for the industrial park. Company shall subordinate the
Property to such restrictive covenants and, if requested by the
City to do so, will execute and record an instrument subjecting
the Property thereto.
(i) Company shall maintain and keep in good repair the
railroad spur constructed along the easterly property line of the
Property and shall enter into all agreements reasonably required
by the Atchison, Topeka and Santa Fe Railroad Company and the City
for the use of the railroad trackage at Pueblo Memorial Airport
and the railroad spur.
(j) Company agrees that it will use its best efforts in
good faith to employ at its facility on the Property between 60
and 70 employees within two (2) years after closing.
(k) At the request of City, Company shall meet and in
good faith confer with the City concerning the annexation of the
Property to the City when the Pueblo Memorial Airport, or any part
thereof including, without limitation, the Property, becomes
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eligible for annexation.
7. Colorado Law This Agreement shall be governed by the
laws of the State of Colorado and shall be construed in accordance
therewith.
8. No Waiver No provision of this Agreement may be waived
except by an agreement in writing signed by the waiving party. A
waiver of any term or provision shall not be construed as a waiver
of any other term or provision.
9. Binding Effect This Agreement shall be binding on the
parties, their heirs, executors, administrators, successors or
assigns. The parties agree to do any and all things necessary to
effectuate the purposes of this Agreement.
10. Construction Throughout this Agreement, the singular
shall include the plural; the plural shall include the singular;
and the masculine and neuter shall include the feminine, wherever
the context so requires.
11. Text to Control The headings of sections are included
solely for convenience of reference. If any conflict between any
heading and the text of this Agreement exists, the text shall
control.
12. Severability If any provision of this Agreement is
declared by any court of competent jurisdiction to be invalid for
any reason, such invalidity shall not effect the remaining pro-
visions. on the contrary, such remaining provisions shall be
fully severable, and this Agreement shall be construed and
enforced as if such invalid provisions had never been inserted in
the Agreement.
13. Amendment This Agreement sets forth the entire under-
standing of the parties and may be amended, altered or revoked at
any time, in whole or in part, only by filing with this Agreement
a written instrument setting forth such changes, signed by the
parties hereto, except as otherwise provided in Section 3.
14. No Assignment The Company shall not assign this
Agreement or any interest therein without the prior written
consent of the City.
15. Notices All notices required to be given by this
Agreement shall be made in writing and served either by:
A. Personal delivery to the party requiring notice; or
B. Mailing notice via the U.S. Mail to the last known
address of the party requiring notice, by first class mail,
postage prepaid.
Effective date of the notice shall be the date of the
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personal delivery as specified in paragraph A above or four (4)
days after the date the notice was deposited in the U.S. Mail as
specified in paragraph B above.
For purposes of this section, the initial addresses of
the parties hereto shall be as follows:
PCL Packaging (South -West) Inc. City Manager
c/o PCL Packaging City of Pueblo
2300 Speers Road 1 City Hall Place
Oakville, Onterio L6L2X8 Pueblo, Colorado 81003
Att: A. G. Thompson
16. Survival of Covenants and Representations. The
covenants, representations and warranties made by each party
herein shall survive the closing for the benefit of the other
party.
17. Non - Exclusive Use of Roads City grants to Company a
non - exclusive easement and right -of -way over and across the
following City owned roads at Pueblo Memorial Airport, to -wit:
Willian White Boulevard, United Avenue, Lockheed Street and
Department of Transportation Road, for purposes of ingress and
egress to and from U.S. Highway 50 -B to and from the Property.
City reserves the right to repair, modify, alter, change,
relocate, temporarily close and provide detours therefor, and
redesignate such roads. Immediately upon the dedication by the
City of the roads, or any portion thereof, to the public, the
easement and right -of -way granted by this paragraph shall cease
and terminate as to the roads or portions thereof so dedicated.
IN WITNESS WHEREOF, the Company has caused this Agreement to
be executed by its duly authorized officers, and the City has
caused this Agreement to be executed by its duly authorized
representatives both on the day and year first written above.
PCL PACKAGING (SOUTH -WEST) INC.
[S E]
ATTEST: By
Secret ry Richard G. Thompson, P esident
CITY OF PUEBLO,
A MUNICIPAL CORPORATION
[S E A LJ
ATTEST: 4liv -Clerk �j�6 /�L�i. 1 /_/_� By
President of the City Council
aM.
N OS0 3651 «- -oPQED r� JUN 1 0 1986
tUEBLO cOUNTY. COLORADO
30,3R2293 .ri _$
WARRANTY DEED
1� IS DEED, made this 0 y
day of `�"n�u= , 1986
�5f and between the City of Pueblo, a Municipal Corporation,
existing under the laws of the State of Colorado (herein "City ")
and PCL Packaging (South- West). Inc., a Delaware Corporation
(herein "Company "),
W I T N E S S E T H:
That the City for and in consideration of the sum of $10.00
and other good and valuable consideration to the City in hand paid
by the Company, the receipt whereof is hereby confessed and
acknowledged, has granted, bargained, sold and conveyed, and by
these presents does grant, bargain, sell, convey and confirm unto
the Company, its successors and assigns forever, all the real
property situate, lying and being at Pueblo Memorial Airport,
County of Pueblo, State of Colorado, more particularly described
in Exhibit "A" attached hereto and incorporated herein (herein
"Property) , with all its appurtenances, and warrant the title to
the same, subject to restrictions, reservations, rights of way,
and easements of record and easements for the existing sanitary
sewer, water and natural gas lines crossing the Property,, and to
the following covenants, conditions, and restrictions which are
and shall be construed to be covenants running with the land
described herein and binding upon the Company, its successors and
assigns and inuring to the benefit of the City, its successors and
assigns.
1. City reserves unto itself and its successors and
Exhibit "A"
aook 2293 FarE829
assigns, for use and benefit of the public, a right of flight for
the passage of aircraft in the airspace above the surface of the
Property, together with the right to cause in the airspace above
the surface of the Property such noise as may be inherent in the
operation of any aircraft now known or hereafter used for naviga-
tion of or flight in said airspace, and for use of the airspace
above the surface of the Property for landing on, taking off from,
or operation on or over the Pueblo Memorial Airport.
2. Company expressly agrees for itself, its successors and
assigns to restrict the height of structures, objects of natural
growth and other obstructions on the Property, to a height of not
more than 4,700 feet above the mean sea level.
3. Company expressly agrees for itself, its successors and
assigns, that it will prevent any use of the Property which would
interfere with landing or taking off of aircraft at the Pueblo
Memorial Airport, or otherwise constitute an airport hazard. In
the event this covenant is breached, City reserves the right to
enter upon the Property and at the expense of the Company to
remove the offending structure or object and to cut the offending
growth.
4. The Property and its use are further subject to the
following Restrictive Covenants:
(a) The Property may be used only for offices and
manufacturing facilities. The Property shall not be used for
smelting or plating operations, or for the storage or processing
of putrescible materials, or for any purpose or business which is
considered dangerous or unsafe, or which constitutes a nuisance,
or which exceeds the state air pollution control standards for the
plant. Gasoline or diesel fuel used in connection with the
business conducted on the Property but not for sale at retail or
wholesale may be stored on the Property in underground storage
facilities.
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(b) Outdoor storage shall not be permitted. Parking
areas for vehicles and roads on the Property shall be paved.
(c) The Property shall not be subdivided and no
building or structure over sixty (60) feet in height shall be
installed or constructed on the Property.
(d) No structure or building shall be constructed or
installed nearer than 65 feet of the right -of -way line of the
frontage street (D.O.T. Road) or thirty -five (35) feet of side or
rear streets. There must be installed and maintained a minimum
thirty -five (35) foot strip of landscaped ground adjacent to the
frontage street and a fifteen (15) foot landscaped strip adjacent
to other abutting streets. Minimum side yards set -backs shall be
twenty (20) feet.
(e) The Property own
maintain the Property and a
improvements located thereon in
condition free of waste, rubbish,
�r shall at all times keep and
1 buildings, landscaping and
a good, clean, safe and orderly
debris and trash.
(f) Before commencing the construction, installation or
alteration of any building, structure, parking facility, outdoor
sign, or other permanent improvement, or landscaping on the
Property, the Property owner shall submit to and have approved by
the City in writing the site plans and plans and specifications
therefor. City's approval will not be unreasonably withheld. In
the event the City or its designated representatives shall fail to
approve or disapprove such plans and specifications within forty -
five (45) days after they have been submitted to the City, such
approval will not be required and this covenant will be deemed to
have been complied with. All buildings, improvements and
activities on the Property shall be constructed and conducted in
compliance with all applicable federal, state and local law,
regulations, and codes.
(g) Waste water discharged from the Property into
City's sanitary sewer system and Company's use thereof are limited
by and subject to City's sewer user, industrial cost recovery,
high strength surcharge, and pretreatment ordinances, rules and
regulations applicable to City's sanitary sewer system at Pueblo
Memorial Airport, now in effect or hereafter adopted or amended.
(h) City reserves the right to waive all or any part of
these Restrictive Covenants.
5. This Deed and conveyance is made upon the expressed
conditions that Company will construct and equip upon the Property
an approximately 44 square foot manufacturing facility (herein
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aook2293 PArFS21
"facility "). If Company shall not commence construction of the
facility on the Property in accordance with plans and
specifications therefor approved by City, including parking, site
development and landscaping plans, within six months from date of
this Deed, the Property, free of all liens, claims, encumbrances,
taxes, restrictions, easements, or rights of way placed on the
Property by the acts or defaults of Company, will revert to the
City. If the Property so reverts to the City, Company, upon
payment by City to Company of all sums paid to City for the
purchase of the Property, shall execute and deliver to City a
special warranty deed conveying to City marketable title to the
Property free of all liens, claims, encumbrances, taxes,
restrictions, easements and rights of way placed thereon by the
acts or defaults of Company.
6. At the request of City, Company shall meet and in good
faith confer with City concerning the annexation of the Property
to the City when the Pueblo Memorial Airport, or any part thereof,
including without limitation, the Property, becomes eligible for
annexation.
7. Invalidation of any one of the foregoing covenants,
conditions, restrictions or reservations by judgment or court
order or otherwise shall in no wise affect any of the other of
said covenants, reservations, restrictions or conditions which
shall remain in full force and effect.
B. City shall have the right to enforce the restrictions,
covenants and conditions hereof by injunction or other lawful
procedure and to recover damages, costs, expenses, including
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scox2293 PArr 821
rea�a attorney fees, resulting from any violation thereof or
A ; �.
arising out of,their enforcement.
_• : CITY OF PUEBLO,
r _ A MUNICIPAL CORPORATION
[S &- ]k L )' ,
ATT-EST r • . f'' By
�-;�•� / re ident of the City Council
;�f C PCL PACKAGING (SOUTH- WEST), INC.
r ..
Richard G. Thompson, President
_.� Sectetar
COUN TY -OF PUEBLO )
Y ) ss .
$ STATES OF COLORADO )
�.r -the foregoing instrument was acknowledged before me in Pueblo
�;16ountx - , _Colorado this 3? day of 1986 by
Michael: Occh -iato as President of the Cit Council of Pueblo,
, Co•-lorkado •and Marian D. Mead as City Clerk of the City of Pueblo,
t `cc ,orado. , ' `
T{7r�tj(es i my hand and official seal.
e
Y
My expires:
( S S
Notary Public
COUNTY OF �.l!✓v )
ss.
STATE OF
/She foregoing instrument was /L acknowledged before me in
County, State of c��L� this ' day
of , 1986 by Richard G. Thompson as President
and Gary T. . ,Briggs as Secretary of PCL Packaging (South- West),
Inc., a Delaware Corporation..,
Y � 'Witness my hand and official seal.
t :
my-commission expires- G 1 9C
Y ^
_ (s °e ACL]
Notary Public
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BOox2293 ma82;
EXHIBIT " A "
A parcel of land located within the County of Pueblo, State of
Colorado, to -wit:
A parcel of land located within a portion of the SE 1/4 of Section
30, Township 20 South, Range 63 West of the 6th Principal
Meridian, being more particularly described as follows;
Beginning at a point on the northerly right -of -way line of United
Avenue from which the NE corner of Section 30 bears N 13 35' 40"
E. (bearings based on the north line of said Section 30 to bear N
89 59' 27" E. with all bearings contained herein being relative
thereto) a distance of 3716.33 feet; thence along the said
northerly right -of -way line the following three (3) courses:
1) S 430 24' 59" W, a distance of 145.07 feet;
2) on the arc of a curve to the right whose radius is
772.20 feet; a distance of 606.56 feet;
3) S 88 25' 20" W, a distance of 60.03 feet to a point on
the easterly right -of -way line of Lockheed Street;
thence along the said easterly right -of -way line the following
three (3) courses:
1)
N O1 34'
40" W, a distance of
283.73 feet;
2)
along the
are of a curve to
the right whose radius is
260 feet,
a distance of 204.10
feet;
3)
N 43 23'
57" E, a distance of
350.27 feet;
thence S 460 28' 13" E, a distance of 545.53 feet to the Point of
Beginning.
Said parcel contains 7.16 acres.